Kodak Secures $765M Government Loan to Produce Drugs

Kodak Secures $765M Government Loan to Produce Drugs

The stock had already rallied an incredible 203% for its best day ever on Tuesday after the USA government granted the company a $765 million loan to begin producing drug ingredients under the Defense Production Act, the first of its kind. They closed Friday at $2.62. "Those are huge costs".

The bottom line: "The loan is the first of its kind under the Defense Production Act, which the Trump administration has previously invoked to speed the production of Covid-19 related supplies such as ventilators".

While Kodak's rally enriched all its shareholders, more than half the company is owned by a few key insiders, including board directors Philippe Katz and George Karfunkel.

Kodak, once a giant in the world of photography whose business has struggled in recent years as cell phones have replaced cameras and film, will expand its existing facilities in Rochester, New York and St. Paul, Minnesota.

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Kodak said Tuesday it will create pharmaceutical components that have been shown to be critical but in short supply, as defined by the Food and Drug Administration.

Total increase in the share price for this week alone was 1,300 percent, hitting a market-cap of more than $1.5 billion from $115 million till July 27, CNBC reported.

"We are pleased to support Kodak in this bold new venture", DFC Chief Executive Adam Boehler said.

"By the time this thing ramps up, 25 per cent of the (active pharmaceutical ingredients) for generics we need in the United States is going to be right at that facility", Navarro said in the interview.

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